U.S. Economy Will Show Some Growth As Euro Economy Contracts

By Ralph Shell: The German French alliance continues to set the agenda for the 17 member single group. The Greek PM was taken to task for the foolish notion that the people of Greece could vote in a referendum on the prescribed fix for the countries' overspending. Faced with the threat to withhold the next payment of €8.B or so due in November, Papandreau caved, not wanting to face the wrath of swarms of unpaid government workers.At the G 20 meetings there seemed to be no fresh source of bailout funds. It seems the preferred bailout mechanism by the Europeans is the IMF. Since three of the five biggest contributors are the US, Japan, and the UK, chipping in for 28.82% of any assessment, compared to only 6.13% for Germany and 4,52% for France, this makes sense to the euro leaders. Why pay for cleaning up your own mess if someone elseComplete Story »

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Washington (AFP) - Reviled in Greece for pushing the bitter medicine of austerity, the IMF has nonetheless thrown Athens a bone by urging European countries to cough up more money to ease Greece's titanic debt load.

The timing of the release of The IMF's 'Greece needs a debt haircut no matter what' report this week was odd to say the least. Being as it confirmed everything the Greek government has been saying and provided the perfect ammunition for Tsipras to spin Sunday's Greferendum as a Yes/No to debt haircuts - something everyone can understand (and get behind).

BRUSSELS: Euro zone countries tried in vain to stop the IMF publishing a gloomy analysis of Greece's debt burden which the leftist government says vindicates its call to voters to reject bailout terms, sources familiar with the situation said on Friday. The document released in Washington on Thursday said Greece's public finances will not be sustainable without substantial debt relief, possibly including write-offs by European partners of loans guaranteed by taxpayers. It also said Greece will need at least 50 billion euros in additional aid over the next three years to keep itself afloat.

Greece needs at least another 36 billion euros (US$40 billion) over the next three years from euro-area states and easier terms on existing debt to keep the nation’s finances sustainable, according to an International Monetary Fund analysis.
Even if Greece delivers on reforms proposed by its international creditors, euro countries will have to come up with new financing and ease the nation’s debt load through steps such as doubling maturities on existing loans, according to a June 26 “preliminary draft” debt-sustainability analysis released Thursday.

Greek Prime Minister Alexis Tsipras called a referendum on the terms offered by creditors for the latest aid package, saying they’re seeking to humiliate the Greek people who must provide a democratic response.
The vote will take place on July 5, Tsipras said in a televised address in the early hours of Saturday. A Greek government official said the country’s banks will open as normal on Monday and no capital controls are planned, asking not to be identified in line with policy.

LONDON/BEIJING – China’s vast manufacturing sector expanded in December but the eurozone is probably deeper in recession, business surveys suggested on Friday.
Data researcher Markit said its Eurozone Flash Composite Purchasing Managers Index, which combines both manufacturing and services sector data, showed small signs of improvement.
It rose to a nine-month high of 47.3 this month, beating forecasts for 46.8.